- Oil set to snap its seven-week rally amid China concerns and rate-hike fears
- September ’23 WTI lost 69c this morning to trade around $79.68/Bbl
- China's economic woes and widening housing crisis continue to weigh on risk assets, including oil
- Fed policymakers in the US indicated the potential for further rate hikes to control inflation, supporting treasury yields and the dollar
- The US dollar is set for its fifth consecutive weekly gain, the longest in over a year, reducing the appeal of dollar-denominated commodities for foreign buyers
- Crude prices have risen by nearly $9/Bbl since June on the back of OPEC+ supply cuts, notably by Saudi Arabia and Russia, with expectations of further cuts
- China's diesel exports surge amid soaring profit margins (Bloomberg)
- China's diesel exports in July soared to 0.91 MMt or 0.22 MMBbl/d, tripling from June figures, driven by strong profit margins
- By end-July, southern China processors made an additional $90/ton exporting diesel to Singapore, up from $39/ton in mid-July, as estimated by OilChem
- With summer-related refinery outages tightening diesel supply, over 85% of the government's export quotas had been utilized by July, pointing to potential new quotas soon
- Meanwhile, gasoline exports last month rose to 1.22 MMt (0.33 MMBbl/d), a 24% increase from June